Korean businesspeople listen to a lecture about AI at a Korea Chamber of Commerce and Industry (KCCI) office in the country this June. The KCCI has come up with a report to predict that the finance and insurance industries would be affected most by the full-fledged adoption of generative AI. Photo courtesy of KCCI

Korean outfit expects generative AI will not replace people

The full-fledged adoption of generative AI like ChatGPT from OpenAI can affect the finance and insurance businesses most, according to the Korea Chamber of Commerce and Industry (KCCI) on Aug. 28.

Unlike widespread concerns about the negative effect on the job market, however, the report predicted that generative AI would not replace people that much for the time being.

The report, which was jointly prepared by Microsoft and Access Partnership, noted that more than 10 percent of tasks of finance and insurance would be affected in case generative AI is fully used right away here.

The reason is that the two industries deal with a large amount of data to do complicated tasks, the areas where generative AI can stand out in the competition with human employees.

The KCCI report said that technology and science businesses would be the next target of generative AI as some 9.6 percent of tasks in the areas would be influenced.

The info-tech sector came in third with 8.1 percent, followed by the wholesale segment with 7.1 percent and the healthcare industry with 6.7 percent.

In comparison, art and entertainment businesses would be least vulnerable as the figure would amount to merely 5.2 percent, along with the farm business with 5.3 percent and the education industry with 5.5 percent.

“Even if all the industries brace for generative AI across the board right now, just 1 percent of people will use the new technology in more than 20% of their tasks,” a KFCC official said.

“Hence, generative AI appears not to pose a serious threat to human jobs for now, although things may be different in the future.”

Yet, Korea can increase its annual productivity by up to $476.3 billion through proactive use of generative AI, which is up to 20 percent of the country’s national output, according to the report.